AB Volvo has announced that it has completed the acquisition of 45% of the Chinese automotive manufacturer, Dongfeng Commercial Vehicles Co., Ltd. The purchase consideration amounted to RMB 5.5 billion, Volvo said.
The deal completion follows the agreement signed in January 2013 with Dongfeng Motor Group Company Limited (DFG), to acquire 45% of a subsidiary of DFG, Dongfeng Commercial Vehicles Co., Ltd (DFCV).
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DFCV includes most of Dongfeng’s operations in heavy-duty and medium-duty commercial vehicles. To implement the transaction, a number of conditions had to be fulfilled, including approval from the Chinese competition authority and other relevant authorities.
Volvo said that the move reinforces its position in the world’s largest truck market.
“This strategic alliance is a real milestone and entails a fundamental change in the Volvo Group’s opportunities in the Chinese truck market, which is the largest in the world,” said Volvo’s President and CEO, Olof Persson.
“At the same time, it will provide us with the opportunity to become involved in growing DFCV’s international business in a manner that will benefit us and our Chinese partner.”
